Ulta Beauty Inc (ULTA)

Inventory turnover

		Feb 3, 2024	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020
Cost of revenue	US$ in thousands	6,826,200	6,164,070	5,262,340	4,202,790	4,717,000
Inventory	US$ in thousands	1,696,780	1,563,920	1,472,340	1,115,360	1,293,700
Inventory turnover		4.02	3.94	3.57	3.77	3.65

February 3, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $6,826,200K ÷ $1,696,780K
= 4.02

Ulta Beauty Inc's inventory turnover ratio has shown a fluctuating trend over the past five years. The company's inventory turnover ratio was 4.02 in 2024, increasing from 3.94 in 2023. This indicates that Ulta Beauty was able to sell its inventory more efficiently in 2024 than in the previous year.

However, when compared to the ratio of 3.57 in 2022, the inventory turnover improved in 2024, suggesting that the company managed its inventory more effectively. Despite this improvement, the inventory turnover ratio was slightly lower than in 2021, where it stood at 3.77.

In 2020, Ulta Beauty's inventory turnover ratio was 3.65, showing a slight decrease compared to 2024. This implies that the company may have improved its inventory management practices over the years, leading to a more efficient use of its inventory.

Overall, Ulta Beauty Inc's inventory turnover ratio has experienced some variability over the past five years, but generally indicates a reasonable level of efficiency in managing and selling its inventory.